27 May 2021
Dear Sir, One of our client dealing in Zinc oxide has exported on FOB basis 5 containers in the month of April2021. The containers could not be exported due to non availability of ship. now the exporter is taking 3 containers. The rest of the two we will sell it to some one else in India. My query is 1. Should we cancel the original bill and issue fresh bill however e way bill was issued on original bill. or we issue a credit not for 2 containers. 2. For rest of the two containers can we issue fresh invoice. But the issue which i am thinking that the goods are at gujarat port and we are registered in Rajasthan can we issue invoice from Rajasthan for sale from Gujarat. or any other process is to be followed.
09 July 2024
Let's address your queries regarding the export of Zinc oxide containers and subsequent sale of two containers in India:
### 1. Handling the Original Export Invoice and E-way Bill
**Issue:** The original export of 5 containers was on FOB basis in April 2021, but only 3 containers could be exported due to non-availability of ships. Now, you plan to sell the remaining 2 containers within India.
**Options for Handling Original Invoice and E-way Bill:**
- **Cancel Original Invoice and Issue Fresh Invoice:** - Since only 3 containers are being exported, you should cancel the original export invoice for 5 containers. The cancellation of the invoice is typically done by issuing a credit note for the 2 containers that are not being exported. - Regarding the E-way bill issued with the original invoice, you should cancel the E-way bill corresponding to the 2 containers that are not being exported. Once canceled, you can then generate a new E-way bill if required for the movement of these containers within India.
- **Credit Note for Non-exported Containers:** - Issue a credit note to account for the cancellation of the 2 containers from the original export invoice. This credit note should reference the original invoice number and clearly state the reason for cancellation (non-exported due to ship unavailability).
### 2. Issuing Invoice for Sale of 2 Containers in India
**Issue:** The remaining 2 containers are to be sold to someone else in India. However, the goods are currently at Gujarat port and your company is registered in Rajasthan.
**Invoicing Process:**
- **Place of Supply Consideration:** Since the goods are located at Gujarat port, the place of supply for GST purposes would be Gujarat, as per Section 10 of the IGST Act, 2017.
- **Invoice from Rajasthan:** While your company is registered in Rajasthan, you should issue the invoice for the sale of these 2 containers from Gujarat. This ensures compliance with GST rules where the place of supply determines the tax jurisdiction.
**Steps to Follow:**
- **Generate Invoice from Rajasthan with GSTIN:** Ensure that the invoice you generate from Rajasthan mentions the GSTIN of your Rajasthan office but specifies the place of supply as Gujarat.
- **Compliance with GST:** - Charge Integrated GST (IGST) on the invoice since this is an interstate sale (sale from Gujarat to another state within India). - Include necessary details such as buyer's details, GSTIN (if applicable), description of goods, quantity, price, etc., as required under GST rules.
- **E-way Bill for Movement within India:** Generate a new E-way bill for the movement of these 2 containers from Gujarat to the buyer's location within India, if the value exceeds Rs. 50,000.
### Conclusion:
- **Cancel Original Export Invoice:** Issue a credit note for the 2 containers that could not be exported and cancel the corresponding E-way bill. - **Issue Fresh Invoice for Sale in India:** Issue a new invoice from Rajasthan (with Gujarat as the place of supply) for the sale of the remaining 2 containers within India. - **GST Compliance:** Ensure compliance with GST regulations, especially regarding the place of supply and invoicing from Rajasthan for goods located in Gujarat.
By following these steps, you ensure compliance with GST regulations and proper documentation for both the canceled export and subsequent sale within India. If you have specific questions about GST or require further assistance, consulting with a GST professional or a chartered accountant would be advisable.
CAclubindia
